NPS Calculator - National Pension System
Calculate your NPS retirement corpus and monthly pension. Plan your retirement with tax-efficient NPS investments.
₹5,000/month for 30 years grows to ₹1.14 Cr by age 60 — built on ₹18.00 L of actual contribution + ₹95.97 L of compounded growth.
At retirement: ₹68.38 L cash (tax-free under Sec 10(12A)) + ₹22,793/month pension from your ₹45.59 L annuity corpus at 6%.
Section 80CCD(1B) is fully claimed at ₹50,000/yr — that's ₹15,000/yr in tax savings at the 30% slab. NPS is the only Indian instrument with this extra ₹50K headroom.
Corpus growth journey
NPS Calculator - Frequently Asked Questions
Q1.What is NPS and how does it work?
National Pension System (NPS) is a government-sponsored pension scheme for retirement planning. You contribute regularly during working years, which is invested in equity, corporate bonds, and government securities. At retirement (60 years), you can withdraw 60% as lump sum (tax-free) and must use 40% to buy annuity for monthly pension.
Q2.What are NPS returns and charges?
NPS returns depend on asset allocation. Historical returns: Equity (E) - 12-14%, Corporate bonds (C) - 8-9%, Government securities (G) - 7-8%. Charges are very low: Fund management fee 0.01-0.09%, NPS Trust fee 0.005%. Total expense ratio is among the lowest in India, making NPS cost-effective for retirement planning.
Q3.What are the tax benefits of NPS?
NPS offers triple tax benefits: (1) Up to ₹1.5L deduction under Section 80C, (2) Additional ₹50,000 deduction under Section 80CCD(1B), (3) Employer contribution up to 10% of salary under Section 80CCD(2). Total tax saving potential: ₹2L+ annually. 60% lump sum withdrawal at maturity is tax-free.
Q4.Can I withdraw from NPS before retirement?
Partial withdrawals allowed after 3 years for specific needs (children's education, marriage, medical emergency, house purchase) - up to 25% of contributions, maximum 3 times. Premature exit allowed after 10 years with 80% going to annuity. Early exit before 10 years requires 80% annuity purchase.
Q5.NPS vs PPF vs EPF - which is better for retirement?
NPS offers highest potential returns (10-12%) with market-linked investments and lowest charges. PPF gives guaranteed 7.1% with complete safety. EPF offers 8.15% with employer contribution. NPS is best for long-term wealth creation, PPF for safety, EPF for salaried employees. Ideally, combine all three for diversified retirement planning.
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